The futures were trading higher Thursday, after a bounce-back day across Wall Street turned negative after the FOMC minutes hit the tape. When it was all said and done, the major indexes ended mixed, with the Nasdaq and the small-cap Russell 2000 posting small gains on the day while the Dow Jones industrials and the S&P 500 closed lower. The minutes indicated that some of the officials felt that the recent easing of financial conditions could keep the need for tighter economic policy firmly in place, so ultimately that signals more rate hikes are in order. All eyes are focused now on the inflation numbers due out Friday.

The personal consumption expenditures (PCE) index is known for capturing inflation (or deflation) across a wide range of consumer expenses and reflecting changes in consumer behavior. Analysts are looking for an increase of 0.5%. Anything much higher (or lower) could cause a shift in market sentiment. This is one of the most closely watched data points that Federal Reserve Chair Powell looks at.

Treasury yields were lower across the board after spiking higher on Tuesday. The long-standing inversion between the two-year and 10-year notes continues to signal that a recession is headed our way. The 10-year closed Wednesday at 3.91%, while the short paper finished at 4.67% after topping 4.70% on Tuesday and hitting the highest level since 2007.

Brent and West Texas Intermediate crude took it on the chin Wednesday, as the major benchmarks finished the day down 2.44% and 2.66%, respectively. That move lower came on the heels of Morgan Stanley predicting global oil demand in 2023 could increase by 36%, citing China’s economic and demand rebound and an increase in air travel. Gold finished the day modestly lower, while Bitcoin was hammered, closing down over 3% at $23,618.

24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding fresh ideas for investors and traders alike. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. Consensus analyst target data is from Refinitiv.

These are the top analyst upgrades, downgrades and initiations seen on Thursday, February 23, 2023.

Alcoa Corp. (NYSE: AA): Citigroup upgraded the aluminum giant’s shares to Buy from Neutral and lifted its $55 target price to $65. The consensus target is $55.64, and shares closed on Wednesday at $48.98.

American International Group Inc. (NYSE: AIG): The Atlantic Equities downgrade of the insurance heavyweight was to Neutral from Overweight. The analyst also trimmed the $70 target price to $65, well below the $71.71 consensus target. The last trade Wednesday was for $60.67 a share.

BioCryst Pharmaceuticals Inc. (NASDAQ: BCRX): Needham upgraded the stock from Hold to Buy with a $14 target price. The consensus target is up at $16.30. The stock closed 13% higher on Wednesday at $9.77, after solid revenues were posted and on the upgrade.
Coinbase Global Inc. (NASDAQ: COIN): Jefferies reiterated a Hold rating but lifted its $35 target price all the way to $60. Oppenheimer reiterated an Outperform rating and raised its price target to $84 from $72, while Barclays maintained an Equal Weight rating and pushed its $57 target price up to $63, somewhat shy of the consensus target. The stock closed on Wednesday at $61.18.

Constellation Energy Corp. (NYSE: CEG): As Credit Suisse cut its Outperform rating to Neutral, its $91 target price dropped to $83. The consensus target is $98.62. Wednesday’s $77.80 close was down 3% on the day.

Diversey Holdings Ltd. (NASDAQ: DSEY): BofA Securities resumed coverage with an Underperform rating and a $6 target price. The consensus target is $6.97. The shares closed on Wednesday at $5.66.

GitLab Inc. (NASDAQ: GTLB): Truist Financial lowered its $75 target price to $65 but maintained a Buy rating. The consensus target is $64.92. The stock closed on Wednesday at $44.32.

Hackett Group Inc. (NASDAQ: HCKT): Craig Hallum’s downgrade to Hold from Buy came with a target price cut to $25 from $30. The consensus target is $28.67. Wednesday’s close at $18.52 was down 13% for the day despite earnings and revenues that beat estimates.

HealthEquity Inc. (NASDAQ: HQY): Jefferies reiterated a Buy rating with an $84 target price. The consensus target is $82.23 The stock closed on Wednesday at $65.30.

Home Depot Inc. (NYSE: HD): UBS reiterated its Buy rating but lowered the target price to $340 from $350. Baird reiterated an Outperform rating its $360 price target dropped to $340. Citigroup also reiterated a Buy rating, as well as reduced its $340 target to $332. The consensus target is $331.25. The stock closed on Wednesday at $296.30, rebounding from a dreadful Tuesday.

LGI Homes Inc. (NASDAQ: LGIH): BTIG Research downgraded the stock to Sell from Neutral and has a $73 target price. The consensus target is up at $103. The stock closed on Wednesday at $104.39.

Manhattan Associates Inc. (NASDAQ: MANH): D.A. Davidson initiated coverage with a Neutral rating and a $145 target. The consensus target is $173.60. Wednesday’s close was at $142.70.

Masimo Corp. (NASDAQ: MASI): Raymond James upgraded the shares to Outperform from Market Perform. Its $187 target price is well above the $166.14 consensus target. The stock closed Wednesday’s session at $166.15, which was up over 3% for the day on the upgrade.

Merck & Co. Inc. (NYSE: MRK): Wolfe Research’s upgrade was from Peer Perform to Outperform with a $127 target price. The consensus target is $118.09. The stock closed on Wednesday at $109.16.

Nordson Corp. (NASDAQ: NDSN): KeyBanc Capital Markets lifted its Sector Weight rating to Overweight with a $255 price objective. The consensus target is $256.20. The stock closed over 4% higher on Wednesday at $221.04 on the upgrade.

Nvidia Corp. (NASDAQ: NVDA): Truist Financial reiterated a Buy rating with a $238 target price. The consensus target is $211.72. The stock closed on Wednesday at $207.54.
Palo Alto Networks Inc. (NASDAQ: PANW): Goldman Sachs reiterated a Buy rating and raised its $205 target price to $213. Citigroup also maintained a Buy rating but trimmed its target price to $332 from $340. Stifel kept a Buy rating, and its $215 target price rose to $225. The consensus target is $208.28 for now. The stock closed on Wednesday at $187.85, up about 12% on the day after earnings solidly topped estimates.

Occidental Petroleum Corp. (NYSE: OXY): Evercore ISI downgraded the stock to Underperform from In Line. The analyst also cut the $74 target price to $60, well below the $75.73 consensus target. Wednesday’s final trade was reported at $58.41.

Okta Inc. (NASDAQ: OKTA): Jefferies reiterated a Buy rating with an $85 target price. The consensus target is $80.75. The shares closed on Wednesday at $72.56.

Salesforce Inc. (NYSE: CRM): Oppenheimer reiterated an Outperform rating with a $185 price target. The consensus target is $189.64, and shares ended trading Wednesday at $163.40 apiece.

Shopify Inc. (NYSE: SHOP): D.A. Davidson’s upgrade was from Neutral to Buy with a $50 target price. The consensus target is $48.21. The stock closed on Wednesday at $42.04.

Sirius XM Holdings Inc. (NASDAQ: SIRI): Rosenblatt’s downgrade to Neutral from Buy included a target price cut to $4.80 from $7.40. The consensus target is $5.80. The stock closed on Wednesday at $4.40.

Target Corp. (NYSE: TGT): Oppenheimer reiterated an Outperform rating with a $190 price target. The consensus target is $177.68. The shares ended Wednesday’s session at $165.75.

ZipRecruiter Inc. (NYSE: ZIP): The Strong Buy at Raymond Jones dropped to Outperform with a $26 target price. That compares with the $24.40 consensus target. Wednesday’s closing print of $17.99 was down 23% on the day despite better than expected earnings and revenues, but the company warned of slower hiring trends.

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Given that the stock market could end the year flat or lower, total return may be the best way to achieve some gains. Five top stocks yielding 7% or more are now incredibly cheap and look like outstanding ideas for investors.

Wednesday’s top analyst upgrades and downgrades included BioMarin Pharmaceutical, BlackRock, CF Industries, Constellation Energy, DocuSign, DraftKings, Mosaic, Norfolk Southern, Nvidia, RingCentral, Riot Platforms and SentinelOne.

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